Market Information Friday 13 December 2019

The British pound benefits from the victory of Boris Johnson’s Conservative Party. This morning the value of one pound rose by 2.8% against the dollar to USD 1.3475. That is the highest value since May 2018. The value of the pound against the euro was almost 2% higher. That is the highest value since mid-2016, shortly after the Brexit referendum.

The average house price in The Netherlands has risen by around 40% since 2013. House prices are currently at a historically high level, but house prices are not immune to a decline. According to Moody’s, the Netherlands is vulnerable to a crash on the housing market and if that happens the economy comes to a standstill. Several scenarios from a sharp reduction in house prices to a long-term but gradual decline have been viewed by Moody’s.

Statistics Netherlands reports that the volume of goods exports was 7.4% higher in October 2019 than in October 2018. In particular, exports of machines and equipment, petroleum products and chemical products increased. The volume of imports was 4.4% higher than in October 2018. The conditions for export in December are less favourable than in October according to the CBS export radar.

The 6M Euribor decreased with 1 basis point to -0.34% compared to previous business day. The 10Y Swap increased with 4 basis points to 0.12% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.